Gold Nearing Bull Breakout

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

Gold remains largely forgotten, off the radars of most investors. But that’s likely to change soon as this leading alternative investment is nearing a major bull breakout. Once gold climbs to decisive new bull-market highs, sentiment will turn and investors’ interest will surge. Their resulting buying will rapidly drive gold higher, attracting in more capital inflows. Gold is only a couple modest up days away from that key breakout.

Universally in all markets, traders’ psychology is completely dependent on price action and levels. When prices are high and rising, speculators and investors alike eagerly buy in. They love chasing winners, so buying begets buying. This creates powerful self-reinforcing virtuous circles, with rising prices helping to entice in ever-more traders. In recent years this dynamic catapulted the market-darling FANG stocks higher.

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Market Volatility Continues To Increase

By Mark J. Lundeen – Re-Blogged From http://www.Gold-Eagle.com

I didn’t miss anything by skipping last week’s posting. The Dow Jones saw its latest correction bottom on March 23rd declining to -11.58% in the BEV chart below. Since then the Dow Jones has oscillated from just below -10% and up to the -8% BEV levels as bulls and bears alike wait to see what is coming their way.

So what’s next for the Dow Jones? Well, my thinking is the Dow Jones saw its last all-time high on January 26th, and in the three months that followed its BEV plot has developed a pattern of lower highs and lower lows.

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Big US Stocks’ Q4’17 Fundamentals

By Adam Hamilton – Re-Blogged From http://www.Silver-Phoenix500.com

The mega-cap stocks that dominate the US markets have enjoyed an amazing bull run. But February’s first correction in years proved things are changing. With that unnatural low-volatility melt-up behind us, it’s more important than ever to keep leading stocks’ underlying fundamentals in focus. They help investors understand which major American companies are the best buys and when to deploy capital in them.

For some years now, I’ve been doing deep dives into the quarterly financial and operational results in the small contrarian sector of gold and silver miners. While hard and tedious work, this exercise has proven incredibly valuable. With each passing quarter my knowledge of individual companies grows, helping to ferret out miners with superior fundamentals and the greatest upside potential. Traders love the resulting essays.

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Hi-Ho Silver!

By Peter DeGraaf – Re-Blogged From http://www.Silver-Phoenix500.com

If the latest COT report for silver gets any more bullish than the one released on March 23rd, commercial traders will have to go ‘net long!’ As it is, they reduced their ‘net short’ position to the lowest number in many years, down to just 4,000 contracts – barely 2% of the total open interest! This is bullish action! As recently as January 16th the number of ‘net short’ positions was 50,000, and the percentage of open interest was 26%. (Charts are courtesy Goldchartsrus.com unless specified).

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“Tech Wreck,” “Techlash,” “Techmageddon” – Whatever You Call It, Wall Street Is Terrified Of It

By John Rubino – Re-Blogged From Dollar Collapse

Back in the 1990s, critics of the dot-com bubble used to point out that the global economy depended on the US stock market and the US stock market depended on, like, ten Internet stocks with negative aggregate earnings. The resulting inverted financial pyramid was, the critics claimed, very easy to tip over.

They were right of course. But apparently not right enough to keep us from repeating the same mistake. From today’s Wall Street Journal:

Warning Sign: Tech Stocks Are Dominating Global Markets Like Never Before

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Chaos is the Only Way Out

By Michael Pento – Re-Blogged From Pento Portfolio Strategies

The prevailing fiction pervading Wall Street right now is that economic growth is picking up in a sustainable fashion and that interest rates will merely rise slowly. Then, soon level off at historically low levels. In other words, they are selling a fairytale; and a dangerous one at that.

This premise is blatantly false. The Fed’s reverse QE program, Government debt levels and Nominal Gross Domestic Product, all dictate that the 10-year Note Yield should be now swiftly on its way to at least 4.5%, from the artificial level of 1.4% found in July of 2016.

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Cheap Gold Stocks Basing

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The small contrarian gold-mining sector remains deeply out of favor, universally ignored. Thus the gold stocks are largely drifting listlessly, totally devoid of excitement. But that’s the best time to buy low, when few others care. The gold stocks continue to form strong technical bases, paving the way for massive mean-reversion uplegs. And they remain exceedingly cheap relative to gold prices, which drive their profits.

Being a gold-stock investor feels pretty miserable and hopeless these days. The gold stocks have been consolidating low for 14.2 months now, stuck in a seemingly-endless sideways grind. There are still gains to be won, but they are mostly within that low-trading-range context. We haven’t seen one of the huge uplegs gold stocks are famous for since the first half of 2016. So most traders have given up and moved on.

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